Pain at the pump as fuel prices hike over increased VAT
The Energy Petroleum Regulatory Authority (EPRA) has hiked fuel prices following increased value-added tax from 8 per cent to 16 per cent.
In a statement, EPRA director-general Daniel Kiptoo announced that the retail price per litre of petrol, diesel and kerosene would increase by Ksh13.49, Ksh12.39 and Ksh11.96 respectively starting July 1.
This comes despite a court order stopping the government from implementing the Finance Act 2023, which has doubled VAT for fuel.
"Pursuant to the Finance Act, 2023, the Value Added Tax (VAT) on Super Petrol (PMS), Diesel (AGO) and Kerosene has been revised from 8% to 16% effective 1st July 2023. As a result, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by Ksh13.49 per litre, Ksh12.39 per litre and Ksh11.96 per litre respectively," Kiptoo stated.
A litre of petro in Nairobi will consequently retail for Ksh195.53, diesel for Ksh179.67 and kerosene for Ksh173.44 starting midnight.
